Macmillan LearningLauren's salary decreases from $40,000 to $30,000. She decides to reduce the number of outfits she purchases each year from 20to 19. Use the midpoint method to calculate the income elasticity of demand for new outfits. Round your answer to twodecimal places.unitsThis good isa normal good and income-elastic.a normal good and income-inelastic.an inferior good.

Given information: When income falls from $40,000 to $30,000, then the demand for outfits falls from…

Answered: Lauren's salary decreases from $40,000…

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Lauren's salary decreases from $40,000 to $30,000 o 19. Use the midpoint method to calculate the in decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Macmillan Learning
Lauren's salary decreases from $40,000 to $30,000. She decides to reduce the number of outfits she purchases each year from 20
to 19. Use the midpoint method to calculate the income elasticity of demand for new outfits. Round your answer to two
decimal places.
units
This good is
a normal good and income-elastic.
a normal good and income-inelastic.
an inferior good.

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